US
Pre-approval
A pre-approval is a lender’s written view, after looking at the buyer’s finances, of how much it may lend. A pre-qualification is weaker, often based on what the buyer said rather than on documents. Neither is a final loan on a specific house.
Also called Pre-qualification.
Ask which letter they have
The letter should name the lender and an amount, and it expires. It does not name the property. The later step is underwriting on the contract. British buyers say “agreement in principle” for the early letter and “mortgage offer” for the formal one. Keep the pair straight when a client has moved between the two countries.
In a vendor report
You can say the buyer has shown a pre-approval letter for a stated amount, dated on a stated day, if you have seen it. You cannot say the lender has approved this house.
Questions
What does Pre-approval mean?
A pre-approval is a lender’s written view, after looking at the buyer’s finances, of how much it may lend. A pre-qualification is weaker, often based on what the buyer said rather than on documents. Neither is a final loan on a specific house.
General information for agency staff, not legal advice. Rules and local practice change. Check the official source before you rely on a definition in a client letter.